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Compensation Governance
Good governance is establishing the right protocols which guide how executive compensation decisions are made and implemented.
The Keys to Good Governance
In today’s era of heightened scrutiny of executive pay and expanding disclosure requirements, good compensation governance is good business—critical to the board’s mission to safe guard shareholder interests by aligning pay with performance.
The Building Blocks of Executive Compensation Governance
Pearl Meyer is committed to helping boards and compensation committees review governance practices and establish and implement the appropriate guidelines for your organization. Our goal is to help you meet both your compliance requirements and also ensure alignment between your compensation programs and your business and leadership strategy.
Our senior consultants guide you through a step-by-step approach to create the right structure, knowledge, processes, and communication strategy.
We can help you:
- Lower risk for your organization, executives, and directors;
- Enhance the quality and outcome of your pay decisions;
- Improve efficiency and effectiveness of your compensation committee, the board, and management and;
- Improve understanding of your pay programs with investors, employees, watch-dog groups, and the media.
Guiding the Corporate Governance Dialogue
Pearl Meyer leads the industry in evolving executive compensation governance practices. Our boardroom experience working with hundreds of public companies each year informs our perspective and guides the governance advice we provide our clients. In partnership with the National Association of Corporate Directors (NACD) we also provide real-world insight by contributing to their annual Blue Ribbon Commission and Governance Challenges reports. NACD members rely on their annual recommendations to inform their governance strategies.
Learn more about our Executive Compensation Governance Services
Review Governance Risk Management
- Examine governance structure, systematic knowledge, processes, and communications around executive and board compensation
- Examine roles and responsibilities in the structure for recommending, approving, monitoring, and implementing elements of the executive compensation program
- Comparison of by-laws and charters to actual practices
Revise Governance Documents
- Compile and review all documents pertaining to executive contracts, salary, incentives, and benefits
- Compensation Philosophy
- Compensation Governance Practices and Committee Charters
Establish Core Executive Compensation Structure and Processes
- Establish and document processes for major executive compensation processes
- Establish frequency of implementation of each process and assist with development of the annual calendar
Board Education
- Explain rules and standards for governing executive compensation
- Outline organization’s programs based on documents, minutes and public filings, including a review of best practices in governance
Internal and External Governance Communication
- Outline and implement disclosure communication strategy
- Shareholder engagement communication and preparation
- Executive and employee communication strategy and content development
Annual Governance Practices Review
- Review in parallel with annual compensation planning
- Provide recommendations for expansion or improvement
Ask the Expert
Ask the Expert
Michael Esser
Michael focuses on executive and board compensation and governance issues. He is interested in the balance between managing market practices at an appropriate level and advancing a company's long-range goals.